PETRONAS Activity Outlook 2024-2026

The geopolitical tensions in Europe and the Middle East have heightened concerns about potential disruptions in the oil and gas market, leading to increased anxiety about supply stability. These conflicts, coupled with the prospect of higher energy prices, pose a threat to global economic growth, especially as central banks strive to control inflation by maintaining elevated interest rates. Despite the cost implications, the imperative for energy security compels major oil and gas players to invest in projects, with many companies making Final Investment Decisions (FIDs) that were delayed during the COVID-19 pandemic. To address rising costs, industry players are turning to technology for cost containment while emphasizing safety and efficiency improvements. The industry's commitment to sustainable operations, emission reduction, and waste reduction is crucial amid the accelerating energy transition. As peak oil demand approaches, a focus on producing barrels with the lowest cost and emissions becomes paramount. Natural gas emerges as a key fuel, particularly for emerging markets aiming to reduce emissions, with PETRONAS highlighting its significant gas portfolio. The downstream sector, fueled by innovation and sustainability, is anticipated to drive the transformation of oil use, with increased demand for packaging and lighter materials necessitating ongoing innovation in the petrochemicals industry.